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Powering Southwest Virginia

Dominion Energy is exploring the potential for building a hydro-electric pumped storage facility in the coalfield region of Southwest Virginia. The project could bring thousands of construction jobs as well as a major new source of local taxes for the region. The facility would store energy from traditional sources, such as Dominion Energy’s coal-fired Virginia City Hybrid Energy Center in Wise County, and as well as new ones.

Following the successful passage of legislation sponsored by Senator Ben Chafin and Delegates Terry Kilgore and Todd Pillion during the 2017 Virginia General Assembly, Governor McAuliffe approved state law which allows Virginia utilities to petition the State Corporation Commission to build pumped hydroelectric storage facilities in the Coalfields region of the Commonwealth. At least part of the energy used to power the facility must be generated by renewable resources.

How Does Pumped Hydroelectric Storage Work?

Pumped Hydroelectric Storage Facility

Pumped hydroelectric storage facilities work like a giant battery, storing energy for when it is needed most. During times of low energy demand, water is pumped to an upper reservoir using lower-cost electricity from the grid. When demand for energy is high, water is released to a lower reservoir through tunnels, turning the turbines which generate electricity. The “on-demand” nature of pumped-storage means it can be called upon quickly when needed. Pumped storage works together with generation sources like coal, natural gas and solar to provide balance and reliability for the energy grid.

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FAQs

What is a pumped hydroelectric storage facility?

Pumped hydroelectric storage facilities function as a giant battery, storing energy for when it is needed most. Specifically, pumped hydroelectric storage facilities store energy in the form of water, using an upper and a lower reservoir to create an elevation difference between the two bodies. During times of high demand on the grid, pumped hydroelectric storage produces electricity by releasing stored water from the upper reservoir into the lower, turning large turbines as it moves. During times of low demand on the grid (nights, weekends or a period of mild temperatures), water is pumped back up to the upper reservoir using lower-cost electricity from the grid (or renewable sources).

What process did Dominion Energy Virginia use to evaluate potential sites, and were there other sites being considered?

Dominion Energy Virginia engaged with two consulting firms to assist in identifying potential locations within the seven-county coalfield region and the City of Norton. During this process, over 150 sites were initially identified for further evaluation. Dominion Energy Virginia continued to further evaluate the sites, and narrowed down to a smaller number of sites based on the following criteria:

Impact on landowners

Environmental and cultural resources

Topographic relief

Suitable geology

Proximity to electric transmission

Water availability

Community interests

Economic considerations (including state and local)

Why was the Tazewell County site the only one included in the September 6th Federal Energy Regulatory Commission (FERC) Preliminary Permit Application (PPA) filing?

The Tazewell County site was selected for further study as it represented the most compatible with our siting criteria.

Did Dominion Energy Virginia consider other sites within the seven counties and the City of Norton that make up the coalfield region?

Yes. However, the Tazewell site for several reasons shows the most potential at this point. Should our in-depth, on-the-ground studies show the site is not suitable, the company has identified potential sites in other locations and may be considered for Preliminary Permit Application (PPA) filings.

Is Dominion Energy Virginia interested in using sites such as a constructed reservoir, old coal mines, or both to build the pumped hydroelectric storage facility?

Both options are under consideration. The design of any proposed pumped hydroelectric storage project is dependent on topography, water resources, and existing conditions. As noted above, research is being done on the potential use of abandoned coal mines as sources of water and as lower reservoirs.

Why did Dominion Energy Virginia not file a Preliminary Permit Application (PPA) for a mine cavity location, i.e. using an abandoned mine cavity as a lower reservoir?

The Department of Mines, Minerals and Energy (DMME) had identified several sites of interest within the coalfield region where a mine cavity could be evaluated for use as a lower reservoir in addition to potential locations for an upper surface reservoir. Dominion Energy Virginia has engaged Dr. Michael Karmis at Virginia Tech to conduct an independent technical evaluation of using an abandoned mine cavity as a lower reservoir. Based upon information provided to Dominion Energy Virginia, the former Bullitt Mine near the town of Appalachia was identified as a top site for evaluation and will be evaluated in the Virginia Tech study.

Does Dominion Energy Virginia’s filing of a Preliminary Permit Application (PPA) mean that Dominion Energy Virginia is completely committed to moving forward with this project?

No, Dominion Energy Virginia is still evaluating the viability of this project. The nature of the Federal Energy Regulatory Commission (FERC) regulatory process makes it necessary to file a preliminary site while still considering if we will move ahead with building a pumped hydroelectric storage facility.

If my property was listed in the Federal Energy Regulatory Commission (FERC) pre-application does it mean that Dominion Energy Virginia will construct a pumped hydroelectric storage facility on my property?

No. The development of the project is only in its very early stages and the project’s final size and scope have not been determined. The sole purpose of a preliminary permit, if issued, is to grant the permit holder priority to file a license application during the permit term. A preliminary permit does not authorize the permit holder to perform any land-disturbing activities or otherwise enter upon lands or waters owned by others without the owners’ express permission.

The Federal Energy Regulatory Commission’s approval of the preliminary application is not a conveyance of any property rights. Dominion Energy Virginia will have to seek the landowners’ permission for access to their property. Dominion Energy Virginia is sensitive to the needs and concerns of the homeowners in those areas listed and will make every effort to keep them informed and work with them throughout the process.

The legislation mentions that renewable energy resources located within the coalfield region would be used to power at least a portion of the hydroelectric facility. Is Dominion Energy Virginia planning any renewables projects, such as solar or wind, in the coalfield region in Southwest Virginia?

While this project is still in its very early stages, as a leading developer and operator of renewable energy such as solar energy and biomass, Dominion Energy Virginia is always evaluating sites and partnerships that make sense for providing more clean and renewable energy to our customers at reasonable prices.

Would a pumped hydroelectric storage facility replace energy generated from coal, such as Dominion Energy’s Virginia City Hybrid Energy Center (VCHEC) in Wise?

No, this kind of storage project supplements other generating sources. The Virginia City Hybrid Energy Center (VCHEC) serves our customers by burning coal and biomass around-the-clock, providing 24/7 generation. A pumped hydroelectric storage facility relies on electricity generated by coal, renewables or other energy sources to operate. It uses electricity from other sources during off-peak times to pump water to the upper reservoir. It then serves as a generator in times of peak demand that can quickly deliver electricity to the grid and help balance the fluctuating nature of renewable energy resources such as solar and wind. Think of the Virginia City Hybrid Energy Center like an engine, and think of the pumped hydroelectric storage facility as a battery. Both are helpful to the overall electric system.

Will there be an impact on the rivers or streams of the region?

Dominion Energy Virginia is keenly aware of the ecosystems in the Southwestern Virginia that make this region unique. As with our development of the Virginia City Hybrid Energy Center (VCHEC), which used one-tenth of the water of a conventional coal plant, we are committed to avoiding and minimizing environmental effects on this region’s biologically diverse ecosystem.

What are the next steps in the process?

Dominion Energy Virginia has been reviewing numerous areas within the coalfield region, and has submitted a preliminary permit application to Federal Energy Regulatory Commission (FERC) for a site in Tazewell County. Dominion Energy Virginia will continue to evaluate the site and conduct a feasibility study prior to filing a licensing application to FERC for the project. If the company makes a commitment to construct a facility, it would be roughly 10 years before the project is complete and ready for service.